While the property/casualty industry has reported three consecutive years of significant underwriting profits, the commercial auto market as a whole reported an underwriting loss for the fifth consecutive year in 2015.
In short, U.S. commercial auto insurance has evolved into a “chronically under performing product segment” for U.S. property/casualty insurers, according to Fitch Ratings.
At the same time, Fitch notes, a number of carriers underwriting the line continue to do well.
Underwriting losses have accelerated with the segment statutory combined ratio rising to approximately 109 for the latest year. The commercial auto combined ratio averaged 106 from 2011-2015, according to analysts at Fitch.